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Shukko (Employee Transfers) and Tacit Knowledge Exchange in Japanese Supply Networks: The Electronics Industry Case

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Author Info
James Lincoln (University of California, Berkeley)
Christina Ahmadjian (Columbia University)
Abstract

Purchase-supply relations in Japanese electronics are less close and cooperative than in the automobile industry and involve less formal knowledge sharing. Our interviews with a number of major Japanese electronics firms reveal that suppliers are less involved in manufacturers' product development processes and are brought in at later stages. However, too much attention to such formal knowledge sharing events may blind one to patterns of cross-firm learning and sharing that transfer the most tacit kinds of organizational knowledge, such as the normative and affective elements of a corporate culture. Using interview information, we discuss the phenomenon of shukko (employee transfers) among Japanese companies. Shukko is often viewed as a downsizing device, although firms claim they do it mostly to exchange knowledge with partners. Our view is that it serves both purposes. However, the volume of shukko varies with the electronics firm. It is most common where customers and suppliers are bound to one another in equity and other "keiretsu" relationships. Shukko is an effective mechanism of cross-firm socialization, so we might expect that firms that shukko extensively are also more likely to develop network-wide cultures of obligation and reciprocity. An example supporting that hypothesis is "Kigyo Denki," our pseudonym for a large, old-line electronics company with strong ties to one of Japan's "big-six" horizontal keiretsu groups. However, some companies, such as Matsushita, have a corporate culture that appears to coordinate and motivate suppliers even in the absence of shukko and other keiretsu ties.

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Paper provided by Institute of Industrial Relations, UC Berkeley in its series Institute for Research on Labor and Employment, Working Paper Series with number 1012.

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Date of creation: 19 May 2000
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Handle: RePEc:cdl:indrel:1012

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Keywords: Japan; suppliers; knowledge;

References listed on IDEAS
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  1. Sako, Mari & Helper, Susan, 1998. "Determinants of trust in supplier relations: Evidence from the automotive industry in Japan and the United States," Journal of Economic Behavior & Organization, Elsevier, vol. 34(3), pages 387-417, March. [Downloadable!] (restricted)
  2. Asanuma, Banri, 1989. "Manufacturer-supplier relationships in Japan and the concept of relation-specific skill," Journal of the Japanese and International Economies, Elsevier, vol. 3(1), pages 1-30, March. [Downloadable!] (restricted)
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